In re S.318 Rasipuram Agricultural Producers Co-operative Marketing Society Ltd (GST AAR Tamilnadu)
As per the first proviso to Section 98(2) of CGST/TNGST Act 2017 the authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act. In the case at hand, it is established that on the issues raised by the applicant before this authority, the Central Tax authorities have initiated proceedings and the same is pending before the Jurisdictional authority at the time of filing of this application. The applicant has also accepted this fact during the personal hearing before us, though they have not mentioned the same in the application (Sl.No. 17). Therefore, the application cannot be admitted and is to be rejected without going into the merits of the issue.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING
Note: Any appeal against this Advance Ruling order shall lie before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under Sub Section (1) of CGST Act / TNGST Act 2017, within 30 days from the date on the ruling sought to be appealed is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
S. 318 Rasipuram Agricultural Producers Co-operative Marketing Society Ltd., 7. Chinnamettu Street , Rasipuram, Namakkal -637408 (hereinafter referred as ‘Applicant’ or ‘Society’) is registered as a cooperative society under the Tamilnadu Co-operative Societies Act and Rules, regulated and governed by the Department of Cooperation of the Government of TamilNadu. They are registered under the GST Act 2017 vide GSTIN 33AAAJR0319M1Z6. The applicant has sought Advance Ruling on the following questions:
1) Whether there is any purchase/sale involved in the process of auction of agricultural produce (cotton) conducted by the Rasipuram Agricultural Producers Co-operative Marketing Society?
2) Whether our Society is liable to pay tax under Reverse Charge Mechanism in the capacity of being an auctioneer?
3) Whether service tax payable on receipt of Commission, Godown rent, Interest, in respect of service provided to agricultural produce?
4) Whether or not the merchants (Registered person) who directly purchase cotton from the agriculturist through auction conducted by the society is liable to pay tax on the basis of Reverse Charge Mechanism?
The Applicant has submitted the copy of application in Form GST ARA – 01 and submitted a copy of Challan evidencing payment of application fees of Rs.5,000/ – each under Sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that their society is registered w.e.f. 02.04.1929 as a co-operative society under the Tamil Nadu Co-operative Societies Act and Rules regulated and governed by Cooperation Department of the Government of Tamilnadu. The principal object of the society is to act as an auctioneers arranging for merchandise auction for marketing of the agricultural produce of its member agriculturists to the best advantage. The nature of transaction undertaken by the applicant is as follows:
